Banks and other consumer finance firms that purchase delinquent debt and then collect on their own behalf are not “debt collectors” under the Fair Debt Collection Practices Act. However, this limitation still does not apply to those institutions that collect on behalf of another.

In a unanimous decision in Henson et al. v. Santander Consumer USA Inc., the United States Supreme Court held that the Fair Debt Collection Practices Act (“FDCPA”) does not apply to banks and other consumer finance firms that purchase and then collect on defaulted debt that they own. No. 16-349, ____ U.S. ____ (2017).

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Blank Rome’s consumer financial services industry team is comprised of a multi-disciplinary group of business, regulatory and litigation lawyers spanning the Firm’s geographic footprint. Their collective related experience is in the areas of regulatory compliance, financial services and commercial litigation, bankruptcy, and white collar criminal defense/government investigations. ....Read More Here